Why is the Hungarian inflation the most problematic in Europe?
Regarding all products, Hungarian inflation was the third highest in Europe, but food prices rose by far the highest in Hungary. In addition to the global causes, there are also domestic reasons behind this high inflation rate, one of which being the weak forint.
The third-highest inflation in Europe
Regarding all products, Hungarian inflation was the third highest in Europe. However, food prices rose the highest in Hungary. The Hungarian price increase of 21.9 percent was surpassed only by Estonian and Lithuanian inflation, reports 24.hu. The smallest price increases were measured in France (7.1 percent) and Spain (7.3 percent). According to Portfolio’s estimate, Hungarian inflation could easily be the highest in Europe in November. One of the most significant reasons behind the extremely high inflation in Hungary is the rapid increase in food prices. In October, the price increase regarding processed (44.6 percent) and unprocessed (38 percent) food was by far the highest in Hungary.
What influences inflation?
In each country, the inflation indicator is strongly influenced by the subsidies and regulations used by national economic policies to deviate prices from the market. Moreover, price control measures in the fields of energy, fuel and food also have a considerable effect on inflation. That is why the consumer price index does not explain the high inflation rate in a country. Eurostat published a filtered indicator that is very close to the concept of core inflation. According to this method, they do not take energy and unprocessed food into consideration. They only look at the price rise. However, if we remove the increase in the price of unprocessed food in Hungary from the price index, the situation will not be more flattering. In fact, according to this measure, the resulting indicator is the highest in Hungary in the entire EU.
Domestic triggers
In order to understand why the situation in Hungary is so problematic regarding inflation, we have to dig deeper. According to Portfolio, there are also domestic reasons that negatively influence inflation. For instance, the weak forint makes imports more expensive. Furthermore, the election distribution led to the rise of prices from the demand side. Therefore, a solution could be the strengthening of the exchange rate. The central bank is confident that the rate of price increase may reach its peak in the coming months and then decline from there.
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Source: portfolio,hu, 24.hu
Doesn’t “Election Distribution” sound euphemistic? It’s actually Politicians showering potential voters with money. Beautiful.
election distribution=election bribes
Propaganda Machine of Fidesz response – no word.
Strange the BLAME Games – the European Union sanctions or the Russian War on the Ukraine not being used as an “instrument” of Major BLAME.
Fidesz pockets no doubt continue to be filled and “palms” greased, whilst we in millions endure the cataclysmic effects of a Government, under the leadership of Victor Orban, “pressing on” in the dictatorial manner we have become accustomed to knowing, who in great part just have got it ALL wrong, in the immediate, short- & long-term FUTURE of Hungary.
NOTHING is GOING to Get CHEAPER in Hungary.
The “Bite” marks inflicted on growing MILLIONS – UGLY.
Orbán has been stealing EU funds for twelve years. In the first 8 years he swiped the money make himself, relatives,his party members rich.
Then, we native Hungarians gradually realized it and started to get disappointed with Orbán Viktor Prime Minister.
At the same time, Orbán began to feel he was losing it. If his theft had got unveiled, he would have gone to jail.
No native Hungarians wanted him to be the Prime Minister so he lost his voters.
He founda solution!
He started to use the stolen money for buying new voters from Romania.
Transylvanians and Romanians who spoke Hungarian. He, secretly, mostly during Covid virus period when no one was allowed to leave quarantine, he was bringing in the Transylvanians and Romanians. Around 2 millions of them. He gave them homes, jobs and money for their votes.
This was how he won the election. It’s a sad story, and what makes Orbán look disgusting, he had evicted Hungarian families and made Hungarian workers redundant.
So now the Transylvanians and Romanians are rich and we, native Hungarians are poor.
Then came the war.
Mafia country